OpenAI Weighs Apple Suit Amid Musk and Data Privacy Battles

AI developer OpenAI is managing a series of legal conflicts and a deteriorating partnership with Apple Inc. The company is currently awaiting a jury verdict in a lawsuit filed by Elon Musk in Oakland, California. Musk alleges that OpenAI and CEO Sam Altman breached a charitable trust by abandoning the company's nonprofit mission for a for-profit model, seeking $150 billion in damages. Closing arguments for the trial concluded on May 14, 2026.

Simultaneously, OpenAI is defending two class-action lawsuits in California. These suits allege the company secretly shared sensitive user data, including prompts and email addresses, with Meta and Google LLC via tracking tools like Facebook Pixel and Google Analytics.

Amidst these disputes, OpenAI has retained an outside law firm to evaluate a breach-of-contract claim against Apple Inc. OpenAI alleges that Apple deliberately limited the visibility of ChatGPT within Siri and iOS 18.2, resulting in subpar subscription growth. Apple has countered by citing concerns over OpenAI's privacy standards and the aggressive poaching of more than 40 Apple engineers for a smartphone project involving former Apple executive Jony Ive. Apple is further diversifying its AI strategy by partnering with Google LLC for Gemini models and testing Anthropic's Claude for future updates.